Ministry to consider scrapping affordable housing projects that are not cost-effective

Zuraida Kamaruddin (left) is pictured at the launch of the FundMyHome scheme  in Semenyih February 20, 2019. — Picture by Miera Zulyana
Zuraida Kamaruddin (left) is pictured at the launch of the FundMyHome scheme in Semenyih February 20, 2019. — Picture by Miera Zulyana

SEMENYIH, Feb 20 — Housing and Local Government Minister Zuraida Kamaruddin has said her ministry will study the feasibility of existing affordable housing development projects under several initiatives.

She said if the ministry deems any ongoing project as not being cost-effective, it may be scrapped.

“The study’s report should be completed sometime in June, after which it will be brought to the Cabinet for discussion,” she said.

Zuraida said these include projects by the 1Malaysia People's Housing Programme (PR1MA), the National Housing Company (SPNB) and the 1Malaysia Civil Servant Housing Scheme (PPA1M).

“Projects already completed by these initiatives will be put up for sale at the Home Ownership Campaign 2019 expo, which runs from March 1 to 3,” she said during the launch of the FundMyHome scheme.

On the scheme, Zuraida said this is yet another initiative to help Malaysians purchase their first homes.

“It enables buyers to pay 20 per cent of the purchase price to own a home, without having to take on a bank mortgage and make monthly repayments.

“The remaining 80 per cent is contributed by participating institutions who share the returns from changes in the home’s future value,” she said, adding that it is an opportunity for those from the B40 category who do not qualify for traditional bank mortgages.

The scheme is an answer to the FundMyHome platform, developed by EdgeProp Sdn Bhd and launched by Prime Minister Tun Dr Mahathir Mohamad in November last year.

Although over 7,000 users have since signed up, many face issues in raising the required 20 per cent, which the scheme is meant to address.

Under it, first-time homebuyers will be able to obtain a loan of up to RM30,000 which must be repaid in full within five years.

Zuraida also said those who wish to sign up for the scheme can also use it when looking at homes for sale in next month’s expo.

“There will be several tens of thousands of home units on display, ranging from prices including under RM150,000 to RM300,000.

“Additionally, prospective buyers can expect discounts on these homes of at least 10 per cent, and there is no need to pay stamp duties or lawyer fees when purchasing,” she said.

Although the expo will only run for three days, Zuraida added the sale prices of the homes featured will last up to six months thereafter.

Alongside EdgeProp chairman Datuk Teng Kooi Ong, she also presented mock keys to 20 buyers under the FundMyHome-Depositku scheme.

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